President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in deep offshore oil and gas investments and reviving major projects that have remained stalled for years.
The reform, given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replaces project-by-project negotiations with a transparent, rules-based framework for qualifying developments.
The Federal Government said the framework is designed to provide investors with greater certainty while strengthening Nigeria’s competitiveness in attracting long-term capital to its deep offshore sector.
The approximately $10 billion Bonga South West project is expected to be among the first major developments to benefit from the new framework.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts, to proceed with the necessary amendments to eligible contracts required to implement the incentives.
The reform followed President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock the next wave of deep offshore investments in Nigeria.
According to the Presidency on Tuesday, the directive was subsequently expanded into a broader framework applicable to multiple categories of qualifying offshore developments, rather than being limited to individual projects.
Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said the framework would also prioritise the development of Nigerian industrial capacity.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible,” she said, adding that the policy would strengthen domestic engineering, fabrication, marine logistics, technical services and project management.
Arowolo-Verheijen said the objective was to increase investment and production while creating skilled jobs, deepening local supply chains and positioning Nigeria as Africa’s regional hub for deep offshore project execution.
The framework was developed through an inter-agency process involving the Presidency, the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission and Nigerian Content Development and Monitoring Board, alongside industry partners.
President Tinubu commended the institutions and industry stakeholders involved in developing the reform.
“The countries that attract long-term investment are not necessarily those with the greatest natural resources. They are the ones that provide the greatest certainty,” Tinubu said.
He said the reform demonstrated the administration’s determination to create an investment environment based on clear rules, strong institutions and enduring partnerships.
“We are creating the conditions for capital to flow, for Nigerian businesses to grow, for our people to prosper and for our natural resources to deliver lasting national value,” the President said.